Betting Education
Market Arbitrage in Sports Betting
Market arbitrage in sports betting refers to the practice of placing bets on all possible outcomes of an event at odds that guarantee profit. This is possible when different bookmakers have drastically different odds for the same event. By carefully analyzing these odds, a bettor can place bets in such a way that no matter what the outcome of the event is, the total amount of money won from one bet will cover the losses of the other bets and leave a profit.
This strategy takes advantage of the inefficiencies in the betting markets. See below for an example of a no-risk 5% profit bet, showcased by ourArbitrage Calculator.
Example of Arbitrage Betting
Let's consider an example with the following betting odds on two different bookmakers: Both bookmakers offer odds of +110 for both possible outcomes of an event. Suppose a bettor places $100 on each outcome:
- Odds: +110
- Stake: $100 per bet
- Payout: $210 per bet if won
The total stake is $200, and the payout for a winning bet is $210, resulting in a guaranteed profit of $10 or a 5.00% return on investment, regardless of the event outcome. This scenario illustrates the concept of arbitrage, where bets are placed simultaneously on all possible outcomes at odds that guarantee a profit regardless of the event's outcome.
